Private & Commercial Finance posts origination rise ahead of bank launch

The lender announced new business originations of £28.2m compared with £25.3m in 2016.

PCFG said its portfolio of receivables had also grown to £127m, while its return on average assets and return on equity continued to meet its expectations.

Scott Maybury, chief executive of PCFG, said the group’s main objective was to complete full mobilisation of the bank and stated the project was on track to be completed by the summer.

“The key mobilisation tasks of governance arrangements, implementing a risk, liquidity and capital management framework, key function recruitment and recovery and resolution planning are well advanced.

“Also, the banking technology and infrastructure work streams have recently moved into the testing phase.

“We are very happy with the progress being made and we are working closely with the PRA and FCA to achieve the lifting of restrictions ahead of taking retail deposits.”

PCFG was granted a banking licence back in December and Scott believes it is a testament to the team that the bank mobilisation process has not distracted from organic growth.

“…There are a number of new business initiatives which we will update shareholders on in more detail at the interim results.

“The banking licence will greatly expand our addressable lending market and thereby provide a significant increase in scale, with a target portfolio of £350m in three years and £750m in five years, which together with our continued focus on operational success and efficiencies will ultimately deliver superior profitability.”